CCM says slot taxes a victory for towns

The Town of Montville expects to collect $129,000 in taxes during fiscal 2013-14 from slot machine leasing companies doing business with Mohegan Sun, something the head of a statewide association sees as a major advance for local governments struggling to raise revenue.

The Town of Montville expects to collect $129,000 in taxes during fiscal 2013-14 from slot machine leasing companies doing business with Mohegan Sun, something the head of a statewide association sees as a major advance for local governments struggling to raise revenue.

The slot machines have been put “back on the grand list,” Montville Finance Director Theresa Hart told the Town Council last week, after the July 15 2nd U.S. Circuit Court of Appeals decision that held the Ledyard town government can collect taxes from slot machine leasing companies doing business with Foxwoods Resort Casino. The decision overturned a federal judge’s decision, who ruled earlier the towns couldn’t collect the taxes.

Foxwoods and Mohegan Sun are owned by Indian tribes. The Mashantucket Pequot Tribal Nation, owner of Foxwoods, argued such machines cannot be taxed because they are on the property of sovereign nations. The tribe said last month it is considering an appeal. Tribal spokesman William Satti couldn’t be reached for comment.

The leasing companies doing business at Mohegan Sun have two more weeks to pay the taxes, Hart said.

The court ruling, if it holds up, is a major victory for the local governments coping with paying for additional public services stemming from the casinos and upward pressure on property taxes to pay for those services, said Jim Finley, executive director for the Connecticut Conference of Municipalities, an umbrella group for cities and towns. Finley said he left a message for Montville Mayor Ron McDaniel on Wednesday, congratulating him on the payments the town is likely to receive.

“The towns prevailed because they’re on the right side of the issue,” Finley said Thursday. “The two tribal casinos are a double-edged sword. They’ve helped in some ways but added to burdens in other ways.”

The Mohegan tribe gives Montville $500,000 annually because it is the host town for Mohegan Sun. The Mashantuckets have never made such a monetary gesture to its host towns that include Ledyard, Preston and North Stonington.

Ledyard has collected at least $100,000 in slot machine leasing taxes since the 2nd U.S. Circuit Court of Appeals verdict, Mayor John Rodolico said, and more is owed. Illinois-based WMS Gaming Inc. has not paid in seven years and owes $320,000, Ledyard Tax Collector Joan Carroll said.